Finally on September 9, 2015 the state Government of Delhi launched the much talked about Education Loan Scheme which will help the students who have for some or the other financial reason dropped their studies by providing a loan upto Rs. 10 Lakh. Deputy Chief Minister and Education Minister Manish Sisodia launched the scheme ahead of DUSU Polls scheduled for September 11, 2015 by offering cheques to the first 25 beneficiaries. Moreover 30 students have been issued sanction letters to whom cheques would be issued soon.

Addressing of Mr. Manish Sisodia

At the inaugural function, on the whole cheques and sanction letters of Rs. 75 lakh were given to the students who have met the prescribed eligibility conditions. Mr. Manish said, “The government is with the students whose parents don't have property as a guarantee to avail loan for their education,". Further he added, "We will take their guarantee and give them a chance to study and not let finance become a hurdle in their education."

While addressing the gathering at the function about the newly launched loan scheme he was of the view that it is a very “big step” in the field of education. He said that many students drop their studies due to the lack of financial resources.

Eligibility Conditions

Students who have passed Class 12 and are interested in pursuing higher studies are eligible for the Loan.

Even the wards of Delhi government employees or officials/government servants posted with Delhi government are also eligible.

Age is no bar.

Loan can be availed by the students irrespective whether enrolled in a private institution or a government institution

The students of the institutions of technical/skill development courses like World Class Skill Centre will also be eligible

All the institutions should have either of these grading: NAAC/NBA/SFRC

When and How the loan has to be repayed?

As per the views of the official there arises no need of any collateral or third party to avail the loan. On successful completion of the degree or diploma course students will one-year moratorium after which it would be expected from them to repay the loan through EMIs over 15 years. The rate of interest to be charged is base rate plus 2 percent.

How the scheme will become a success?

The scheme would become a success if the students fulfill the commitment of repaying the loan. He said, “We take the guarantee of those students who fail to get a job despite higher education. But this trust will break if students do not repay even after getting jobs.”

Education is the top most priority for the seven-month-old Aam Aadmi Party-led Delhi government, which earmarked a lion's share - Rs. 9,836 crore- in its Rs. 41,129 crore maiden budget.